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Homes > Repayment
v. Interest Only
Repayment mortgages.
This works on the principal that each month, you pay
off a small portion of the original loan, plus the interest accrued.
At the end of the mortgage’s life span you will own 100% of the
property, although the monthly repayment can be high.
Interest only mortgages.
With this plan you pay only the interest. These mortgages
are usually only considered when they are taken out in conjunction with
another repayment plan. These can include, Endowment policies, ISA’s
or pension plans. (Financial advice is recommended if you are considering
taking out an ISA.)
Flexible Mortgages
Some banks may also give you the option of taking out a Flexible
Mortgage. This way the lender gives you the option of paying more
than the agreed monthly amount into your mortgage when you can afford
to, or even skipping payments if you are in short term financial difficulty.
Flexible mortgages are usually available on repayment mortgage packages.
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